Raymundo vs Luneta Motor 58 Phil 889

7/21/2019 Raymundo vs Luneta Motor 58 Phil 889

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Raymundo vs Luneta Motor 58 Phil 889

F: Nicanor de Guzman signing as Guzco Transit urchased truc!s "rom

Luneta Motor and e#ecuted PNs guaranteed $y a chattel mortgage on

several truc!s% Failing to ay the PNs& a suit "or collection 'as (led% ) 'rit

o" attachment 'as issued and garnishment 'as served on the P*+

attaching the right& title& and articiation o" Guzco Transit in the +P+

covering the $us transortation lines $et'een Manila and Rizal% The +F,

ordered the selling o" these certi(cates in a u$lic $idding in 'hich LunetaMotor 'as the highest $idder% Nine days a"ter the certi(cates 'ere

attached& these 'ere sold to Raymundo -including certi(cate No% .595/

'hich 'as not included in the sale to Luneta Motor +o%0% The aroval o"

the sale 'as sought "rom the P*+% The P*+ aroved the sale in the u$lic

$idding and disaroved the sale to Raymundo e#cet 'ith resect to

+erti(cate No% .595/ 'hich Raymundo could aly "or its aroval%

,ssue : 1hich o" the t'o sales should revail2 u$lic auction $y virtue o" an

attachment vs voluntary sale 3eld : *ale to Luneta Motor +o% in a u$lic

auction The Pu$lic *ervice La' authorizes certi(cates o" u$lic

convenience to $e secured $y u$lic service oerators "rom the P*+% )

+P+ grants a right in the nature o" a limited "ranchise% The +ode o" +ivilProcedure does not e#clude "ranchises or certi(cates "rom the 'ord

4roerty%4 The test $y 'hich to determine 1N a roerty can $e

attached and sold uon e#ecution is 'hether the 6udgment de$tor has

such a $ene(cial interest therein that he can sell or other'ise disose o" it

"or value% The Pu$lic *ervice La' ermits the P*+ to arove the sale&

alienation& mortgaging& encum$ering or leasing o" roerty& "ranchises&

rivileges& or rights or any art thereo"% ," the holder o" a certi(cate can

voluntary sell it& there is no reason 'hy the same cannot $e sold

involuntarily ursuant to court rocess% +P+s have considera$le material

value% They are valua$le assets% They are su$6ect to $eing sold "or

consideration as much as any other roerty% They are even more valua$le

than ordinary roerties& ta!ing into consideration that they are not

granted to every one 'ho alies "or them $ut only to those 'ho

underta!e to "urnish satis"actory and convenient service to the u$lic%

Though intangi$le& they are o" value and are considered roerties 'hich

can $e seized through legal rocess%%



7atangas Transortation +o% vs rlanes 5. Phil 55

F: rlanes sought to have a +P+ to oerate a line o" auto truc!s 'ith (#ed

times o" dearture $et'een Taal and 7antilan& 'ith the right to receive

assengers and "reight "rom intermediate oints% The evidence is

conclusive that at the time o" his alication& rlanes 'as an irregular

oerator $et'een 7antilan and Taal& and that 7T+ 'as a regular oerator

$et'een 7atangas and Rosario% rlanes sought to have his irregular

oeration changed into a regular oeration& and to set aside and nulli"y the

rohi$ition against him in his +P+ that he shall not have or receive any

assengers or "reight at any o" the oints served $y the 7T+ 'hich holds a

rior license "rom the P*+% 3is etition is $ased on the "act that to comly

'ith the gro'ing demands o" the u$lic& the 7T+ alied "or a ermit to

increase the no% o" tri hours at and $et'een the same laces and "or an

order that all irregular oerators $e rohi$ited "rom oerating unless they

should o$serve an interval o" . hours $e"ore or one hour a"ter the regular

hours o" the 7T+% The P*+ granted the etition o" rlanes%

,ssue : 1N a +P+ should $e issued to a second oerator in a (eld 'here&and in cometition 'ith& a (rst oerator 'ho is already oerating a

sucient& adeuate and satis"actory service%

3eld : N% ;ecision o" P*+ is revo!ed% )n auto$us line is a u$lic utility&

and as such& is a common carrier and an imt% "actor in the $usiness a<airs

o" the community% The P*+ has the o'er to seci"y and de(ne the terms

and conditions uon 'hich any u$lic utility shall oerate and to ma!e

reasona$le rules and regulations "or its oeration& and to (# the

comensation that it shall receive "or its service to the u$lic& and "or good

cause may susend or even revo!e a license granted% ,t is not the olicy o"

the la' "or the P*+ to issue a +P+ to a second oerator to cover the same

(eld and in cometition 'ith a (rst oerator 'ho is rendering sucient&adeuate and satis"actory service& and 'ho in all things and resects is

comlying 'ith the rules and regulations o" the P*+% The o'er o" the P*+

to issue a +P+ is "ounded on the condition recedent that a"ter a "ull

hearing and investigation& it shall (nd as a "act that the roosed oeration

is "or the convenience o" the u$lic% *o long as the (rst oerator !ees and

er"orms his terms and conditions o" its license and comlies 'ith the

reasona$le demands o" the u$lic& it has more or less o" a vested and

re"erential right over another 'ho see!s to acuire a later license to

oerate over the same route% To carry out the urose and intent "or 'hich

the P*+ 'as created& the la' contemlates that the (rst license 'ill $e

rotected in his investment and 'ill not $e su$6ected to ruinous

cometition% The rimary urose o" the P*+ is to secure adeuate&

sustained service "or the u$lic at the least ossi$le cost and to rotect

and conserve investments 'hich have already $een made "or that

urose% ) +P+N "or the oeration o" an auto truc! line in occuied

territory should not $e granted 'here there is no comlaint as to e#isting

rates and the co% in the (eld is rendering adeuate service% ,t is the duty

o" the P*+ to rotect rather than to destroy the investment o" a u$lic

utility% The olicy o" regulation uon 'hich the resent u$lic utility

commission lan is $ased and 'hich tends to do a'ay 'ith cometition

among u$lic utilities as they are natural monoolies& is at once the reasonthat the regulation o" an e#isting system o" transortation& 'hich is

roerly serving a given (eld& or may $e reuired to do so& is to $e

re"erred to cometition among several indeendent systems% 1hile

reuiring a roer service "rom a single system "or a territory in

consideration "or rotecting it as a monooly "or all the service reuired

and in conserving its resources& no economic 'aste results and service

may $e "urnished at a minimum cost%



*an Pa$lo vs Pantranco *outh =#ress& ,nc% /5> *+R) /99

F: Pantranco oerates assenger $uses "rom Metro Manila to 7icol and

=astern *amar% ,t 'rote to the Maritime ,ndustry )uthority -M)R,N)0

reuesting authority to lease?urchase M@ 7lac! ;ou$le to $e used in

oerating a "erry$oat service "rom Matnog& *orsogon and )llen& *amar that

'ill rovide service to co% $uses and "reight truc!s that have to cross the

7ernardo *trait% M)R,N) denied the etition on the ground that the

MatnogA )llen run is adeuately serviced $y the +ardinal *hiing +or%

and =itacio *an Pa$lo and that mar!et conditions cannot suort theentry o" additional tonnage% Pantranco acuired the vessel% ,t then alied

to 7T claiming that it can oerate a "erry service in connection 'ith its

"ranchise "or $us oeration in the high'ay "rom Pasay +ity to Taclo$an +ity

"or the urose o" continuing the high'ay& 'hich is interruted $y a small

$ody o" 'ater& and that the roosed "erry oeration is merely a necessary

and incidental service to its main service and o$ligation o" trans"erring

assengers "rom Pasay +ity to Taclo$an +ity% )ccdg% to it& there is no need

to o$tain a searate +P+ to oerate a "erry service to cater e#clusively to

its assenger $uses and "erry truc!s% Pantranco $egan oerating its "erry

service% The 7T held that the "erry$oat service is art o" PantrancoBs +P+

and amended PantrancoBs +P+ to rovide so% The t'o other "erry $oatservices (led motions "or reconsideration%

,ssue : 1N the sea can $e considered as a continuation o" the high'ay%

1N a land transo co% can $e authorized to oerate a "erry service or

coast'ise or interisland shiing service along its authorized route as an

incident to its "ranchise 'ithout the need o" (ling a searate alication "or

the same% 3eld : The 'ater transort service $et'een Matnog and )llen is

not a "erry$oat service $ut a coast'ise or interisland shiing service%

7e"ore rivate resondent may $e issued a "ranchise or +P+ "or the

oeration o" the said service as a common carrier& it must comly 'ith the

usual rets% o" (ling an alication& ayment o" the "ees& u$lication&

adducing evidence at a hearing and a<ording the oositors theoortunity to $e heard% +onsidering the environmental circumstances o"

the case& the conveyance o" assengers "rom Matnog to )llen is not a

"erry$oat service $ut a coast'ise or interisland shiing service% Cnder no

circumstances can the sea $et'een Matnog and )llen $e considered a

continuation o" the high'ay% 1hile a "erry$oat service has $een

considered as a continuation o" the high'ay 'hen crossing rivers or even

la!es& 'hich are small $ody o" 'aters searating the land& ho'ever& 'hen

as in this case the t'o terminals are searated $y an oen sea& it cannot

$e considered a continuation o" the high'ay% Pantranco must secure a

searate +P+ "or the oeration o" an interisland or coast'ise shiingservice% ,ts +P+ cannot $e merely amended to include this 'ater service

under the guise that it is a mere rivate "erry service% Pantranco does not

deny that it charges its assengers searately "rom the charges "or the $us

tris and issues searate tic!ets 'henever they $oard the M@ 7lac!

;ou$le% ,t cannot retend that it issued tic!ets as a rivate carrier and not

as a common carrier% ,t in "act accets 'al! in assengers during the tris%

,t cannot claim that it is $oth a rivate carrier and a common carrier at the

same time%

,n the case o" Davellana vs P*+& the +ourt di<erentiated $et'een "erry

service and interisland or coast'ide service% Ferry means service either $y

$arges or ra"ts& even $y motor or steam vessels& $et'een the $an!s o" ariver or stream to continue the high'ay 'hich is interruted $y a $ody o"

'ater& or in some cases& to connect t'o oints on oosite shores o" an

arm o" the sea such as a $ay or la!e 'hich does not involve too great a

distance or too long a time to navigate% 7ut 'here the line or service

involves crossing a $ody o" 'ater 'hich is 'ide and dangerous 'ith $ig

'aves& then such line or service $elongs roerly to interisland or

coast'ide trade% >% Private nature: rights and o$ligations o" arties inter

se arising "rom transactions relating to transortation

-a0 a$sent a transortation

contract

-$0 arising "rom a

transortation contract

-i0 contract o" transortation& de(ned A one 'here$y a certain erson or

association o" ersons o$ligate themselves to transort ersons& things or

ne's "rom one lace to another "or a (#ed rice

-ii0 contract o"

transortation& elements



-$0 The +erti(cate o" Pu$lic +onvenience -+P+0& the +erti(cate o" Pu$lic

+onvenience and Necessity -+P+N0& and the Prior erator Rule

;i<erence $et'een +P+ and +P+N : ) +P+N is issued $y the P*+ to a

u$lic service to 'hich any olitical su$division has granted a "ranchise

under )ct EE a"ter the P*+ has aroved the same under *ection /E-$0% )

+P+ is any authorization to oerate a u$lic service issued $y the P*+% )

+P+ is an authorization issued $y the +ommission "or the oeration o"

u$lic services "or 'hich no "ranchise& either municial or legislative& is

reuired $y la' -e%g% autoAtruc!s and motor vehicles0% ) +P+N is an

authorization issued $y the P*+ "or the oeration o" u$lic services "or

'hich a "ranchise is reuired $y la' -e%g% electric& telehone services0%

Nature o" certi(cate : ,t constitutes neither a "ranchise nor a contract&con"ers no roerty rights and is a mere license or rivilege& and such

rivilege is "or"eited 'hen the grantee "ails to comly 'ith his

commitments $ehind 'hich lies the aramount interest o" the u$lic& "or

u$lic necessity cannot $e made to 'ait& nor sacri(ced "or rivate

convenience% 3o'ever& certi(cates reresent roerty rights to the e#tent

that i" the rights 'hich any u$lic utility is e#ercising ursuant to la'"ul

orders o" the P*+ has $een invaded $y another u$lic utility& in aroriate

cases actions may $e maintained $y the comlainant u$lic utility% 'ners

o" u$lic utilities have the right to maintain aroriate actions against

other u$lic utilities not authorized to oerate in cometition 'ith the

comlainant% +erti(cates are considered as roerty as used in +ivil

Procedure as they have material value and are material assets% They are

su$6ect to attachment and seizure $y legal rocess& and may $e acuired

$y urchase%

;etermination o" 1N an issuance o" a certi(cate is "or u$lic convenience

A -/0 (nancial resonsi$ility o" the alicant& -.0 relia$ility o" the alicant&

->0 riority o" (ling the alication "or a certi(cate& and -0 riority o"

oeration

Prior oerator rule A to carry out the urose and intent "or 'hich the P*+

'as created the la' contemlates that the (rst licensee 'ill $e rotected

in his investment and 'ill not $e su$6ected to a ruinous cometition% ,t is

not there"ore the olicy o" the la' "or the P*+ to issue a +P+ to a second

oerator to cover the same (eld and in cometition 'ith a (rst oerator

'ho is rendering sucient& adeuate and satis"actory service& and 'ho in

all things and resects is comlying 'ith the rules and regulations o" the

P*+% )ccordingly& a +P+ or +P+N ought not to $e granted 'here there is

no comlaint as to e#isting rates and the co% in the (eld is rendering

adeuate services% A regular oerators are re"erred over irregular

oerators

A rior oerator is given oortunity to imrove service

A rior oerator given oortunity to e#tend lines

A $asis o" rule : to revent ruinous and 'aste"ul cometition in order that

the interests o" the u$lic 'ould $e conserved and reserved so long as

the oerator comlied 'ith the terms and conditions o" the license and the

reasona$le demands o" the u$lic& it is the duty o" the P*+ to rotect

rather than to destroy its investment

Raymundo vs Luneta Motor 58 Phil 889

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